Tether Announces Plans to Create a New Stablecoin Linked to the United Arab Emirates Dirham (AED)

Tether CEO Paolo Ardoino emphasized the UAE's role as a "significant global economic hub," stating that the stablecoin will cater to businesses and individuals seeking secure and efficient transactions in AED.

Stablecoin issuer Tether has announced plans to create a new stablecoin pegged to the United Arab Emirates Dirham (AED).

Tether will work with UAE-based Phoenix Group PLC and Green Acorn Investments Ltd on the launch of the new stablecoin, which will be fully-backed by liquid UAE-based reserves and will adhere to Tether’s existing standards.

The Dirham-pegged token will join Tether’s existing range of stablecoins, which include those pegged to the US Dollar, Euro, Chinese Yuan, and Mexican Peso.

Tether CEO Paolo Ardoino highlighted the UAE's role as a "significant global economic hub," stating that the stablecoin will cater to businesses and individuals seeking secure and efficient transactions in AED, including cross-border payments and asset diversification.

Ardoino added that the new stablecoin aims to offer benefits associated with the AED while leveraging blockchain technology.

“The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition,” said Ardoino.

“Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets.”

The company noted that the new token will be designed to offer the benefits of the AED, such as its stability and wide acceptance within the UAE, while also leveraging the efficiency, transparency, and global reach of blockchain technology to cater to a broader audience.

Tether has yet to secure an audit from a Big Four accounting firm, which Ardoino has identified as a "top priority" for the company.

The company's reserves were last attested to by Bahamas-based law firm Freeths in August 2022, which confirmed that Tether's reserves exceeded the total amount of tethers in circulation.

The UAE has been emerging as a hub for cryptocurrency and blockchain innovation, with the establishment of the Virtual Asset Regulatory Authority in Dubai spurring crypto investments since 2022.

Seyedmohammad Alizadehfard, Co-Founder and CEO of Phoenix Group, expressed optimism about the partnership, highlighting Abu Dhabi's forward-thinking stance on blockchain and digital assets.

“We are excited to partner with Tether in launching this new stablecoin pegged to the UAE Dirham,” said Alizadehfard.

“This stablecoin will play a crucial role in advancing the UAE's Web3 strategy, attracting international investors, and boosting the country's economic growth. With Abu Dhabi's forward-thinking approach to blockchain and digital assets, we are confident that this partnership will create a valuable addition to the thriving crypto ecosystem in the region.”

Tether, known for its USDT stablecoin, reported a record profit of $5.2 billion in the first half of 2024. The global stablecoin market is valued at $150 billion and is projected to grow to $2.8 trillion by 2028.